Madinet Nasr for Housing and Development (MNHD) reported 39.6% sales drop to EGP 2.7bn in the first nine months (9M) of 2021, from EGP 4.5bn in 9M 2020 that had been supported by the EGP 1.1bn land sale. Excluding the EGP 1.1bn land sale from 9M 2020 sales would still translate into a 19.2% y/y drop in 9M 2021 sales.
The company’s revenue in the third quarter (3Q) of 2021 was down 4.3% y/y to EGP 428.4m, due to a 16.5% y/y decline in unit deliveries, and down 7.2% q/q despite a 42.5% q/q rise in unit deliveries which implies a lower-value delivery mix q/q. The revenue declined 21.5% y/y to EGP 1.4bn in 9M 2021, due to 9M 2020 revenue having included land sale proceeds. Deliveries in 9M 2021 were up 64.7% y/y to 570 units in preparation for MNHD’s securitization programme.
Gross profit declined 63.6% y/y and 56.8% q/q to EGP 115.9m in 3Q 2021, leading to a lower GPM of 27.1%. Gross profit in 9M 2021 reached EGP 627.4m, down 44.9% y/y.
Net profit decreased 85.6% y/y and 81.2% q/q to EGP 21.4m in 3Q 2021, translating into a low NPM of 5.0% and bringing 9M 2021 net profit to EGP 250m, down 60.4% y/y.